American Express Platinum cardholders are rushing to redeem their semi-annual Saks Fifth Avenue credits. This accelerated spending follows growing concerns that the luxury retailer may be heading toward a potential bankruptcy restructuring.
The rush stems from uncertainty over whether Saks would honor store credits and gift cards if it files for bankruptcy protection. The Saks credit is a significant perk for members of the premium $895-a-year card.
A Columbia University bankruptcy expert compared the customer action to a "run on the bank." Experts note the retailer could experience a resource drain resulting from the accelerated redemptions.
Reports did not include information regarding a market reaction for American Express’s stock price.